Question
Question 4: (20 points) A- A company borrowed $ 74,500. The company plans to set up a sinking fund that will pay back the loan
Question 4: (20 points)
A- A company borrowed $ 74,500. The company plans to set up a sinking fund that will pay back the loan at the end of 6 years. Assuming a rate of 6% compounded semiannually, find the Sinking Fund of the ordinary annuity. (7 points)
B- An employee decided to invest $ 1,960 quarterly for eight years in an ordinary annuity at 20%. What is the total cash value of the annuity at end of year 8? (7 points)
C- What must YOU invest today to receive an annuity of $ 3,800 for 12 years compounded at 8% quarterly when all withdrawals will be made at the end of each period? (6 points)
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